RATE(NoOfPeriods, Payment, PresentValue, FutureValue, Type, Guess)
- where, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NoOfPeriods} represents total number of payment periods
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Payment} represents the payment made for each period
- represents the remaining value of payment to be done
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} represents the balance value to attain after last payment is made
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} represents the payments due
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Guess} is the guess value for what rate will be
RATE() calculates the interest rate per period for a year.
Description
RATE(NoOfPeriods, Payment, PresentValue, FutureValue, Type, Guess)
- RATE is calculated by iteration and can have zero or more solutions.
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Payment} includes principal value and the interest amount. If omitted, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is required.
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} , Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} and Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Guess} are optional.
- If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is omitted, Calci assumes it to be zero(0).
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} can be represented as '1' or '0'.
| Type | Payments Due |
|---|---|
| 0 or omitted | At the end of the period |
| 1 | At the beginning of the period |
- If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Guess} is omitted, Calci assumes it to be 10%.
Examples
Consider the following example that shows the use of RATE function:
| 2 | 8 | |
| -50 | -100 | |
| 2000 | 50000 | |
| 0 | 0 | |
| 1 | 0 | |
| 12% |
=RATE(A1*12,A2,A3,A4,A5,A6) displays monthly rate of loan -4.01% as a result. =RATE(B1*12,B2,B3,B4,B5) displays monthly rate of loan -2.77% as a result. =RATE(B1*12,B2,B3,B4,B5)*12 displays annual rate of loan -0.33263515005213806 as a result.